Nifty Bulls Eye 22,000 Mark as Index Continues Uptrend
Nifty closed 124 points higher on Thursday, surpassing the 21,800 level for the first time and forming a positive candle at the highs, signaling a continuation of the bullish trend. As the index cleared the initial hurdle of 21,650 levels, traders and investors anticipate a further rally towards the next resistance at 22,200 levels in the near term.
Nagaraj Shetti of HDFC Securities noted that immediate support for Nifty is at 21,550 levels, while the immediate hurdle lies within the 21,900-22,000 range. Furthermore, the immediate support has shifted higher to the bullish gap observed at 21,675 levels, with a strong support zone identified between 21,500 and 21,480.
Technical indicators further support the bullish sentiment. The Donchian Channel, a trend-following indicator, suggests that the Nifty remains in a bullish undertone. Additionally, Nifty is trading above all key moving averages and holds substantial support around 21,650 levels. The Relative Strength Index (RSI) is at a comfortable 78 levels, indicating continued bullish strength. Bollinger bands suggest that if the index surpasses the 21,830 levels, a rally to 21,910-21,970 zones could be expected.
In the derivatives market, the highest addition of open interest (OI) was seen in the 21,750 put strikes, while the 21,800 call strikes witnessed significant OI build-up.
The new all-time high for Nifty showcases its firm position in bullish territory. The presence of strong put writing at the 21,700 strike further bolsters the bulls, propelling the index towards the 21,800 level. Short-term support is identified at 21,700, indicating the continuation of a bullish sentiment. A decisive move beyond 21,800 could potentially lead the index towards the coveted 22,000 mark.
Traders and investors should keep a close eye on the index’s movement and the key resistance and support levels mentioned by experts. Technical indicators and derivatives data provide crucial insights for making informed decisions in the market. However, it’s essential to note that recommendations and opinions given by experts are subjective and may not align with individual strategies or risk appetite.
In summary, Nifty continues its upward trajectory, surpassing the 21,800 level and forming a positive candle at the highs. With the immediate hurdle at 21,900-22,000 and immediate support at 21,550, traders eagerly anticipate the index’s potential rally towards the 22,200 resistance level. As always, exercising caution and conducting thorough analysis is crucial in navigating the markets successfully.
